May 23, 2008

(Un)Expected Income

Posted in extra income, financial decisions, saving tips at 9:47 pm by kimsan23

One thing I like about being employed is the that money comes in every month, without fail.  I had just received my mid-year bonus and I am happy to say that it has contributed greatly to my savings account.  I immediately put aside one half of it to go to my savings account.  The other part will be used as a revolving fund for our business and the remaining balance will go to driving lessons.

I knew that this money was coming but wasn’t able to make plans for it until today.  I kind of liked it thought that it came quite unexpectedly because when I used to look forward to receiving it (from my old company), I always ended up spending the amount BEFORE I get it.  I’d swipe my credit card knowing that I’d have money to pay for my purchase in a few months!  That was just plain dumb.  After accumulating debt over spending without the actual money on hand, I decided to stop my “I’m gonna have $$$ anyway” attitude and decided to be realistic.

Things to remember when you’re expecting extra income:

  1. DO NOT spend money you do not have.
  2. If you are unsure about the amount, make a conservative estimate and plan.
  3. If you are sure about how much it will be, go ahead and plan.
  4. Your plan must not, as much as possible include paying for something you bought because you were expecting.  Pay for old debts without making new ones!
  5. Set aside a “fun amount” — reward yourself with something so that you do not feel deprived.

What to do when you get unexpected income:

  1. Verify the source to know if it’s legit (most of the time, it is).
  2. Make a priority list of expenses you may want to use the money for.
  3. Set aside and amount for savings (you can even save it all).
  4. You can also use it to go to a business fund you had previously set-up.  Or you can start a fund just for that.
  5. Reward yourself!
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6 Comments »

  1. Fitz said,

    Nice post. So true – pay yourself first, pay your debts, invest some and then have fun! 😀

  2. kimsan23 said,

    Now that’s how I want to use my money!

  3. kengkay said,

    yup, you would have more fun with your money if you’d take care of how you spend it 😀 welcome to WPP!

  4. kimsan23 said,

    Thanks for the welcome! 🙂

  5. Ross said,

    Hi Kimsan,

    I suggest you add to your income by subscribing your blog to Google’s Adsense. I placed some ads in my Final Table Donkey blog http://finaltabledonkey.blogspot.com and it doesn’t look as intrusive as I originally thought it would. And I’m able to earn a small amount. With the hits you’re getting, I’m sure it’ll add more than a few dollars.

    I’m planning to place ads in my Long Lost Blogger blog http://longlostblogger.blogspot.com as well to maximize earnings but I haven’t gotten around to doing it.

    BTW, congratulations on being the 1st search result in Google. My dream is to become the 1st search result when searching “Poker Blog” but I guess that won’t come true in the near future. There’s just too many poker blogs out there.

    Lastly, I read somewhere that the difference between a dream and a goal is that a goal has a deadline while a dream doesn’t. Makes you think. I hope you get to your goal soon.

    Ross

  6. kimsan23 said,

    Hi Ross! I can’t put adsense on this blog, not allowed by wordpress. However, if I move blogs then I actually could. My other blog makes a little money through google adsense so I’m trying to see how that goes.

    I hope to reach my goal in about two years. Three max. Of course if I’m still not there by then, no harm in still trying.


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